Central Bank of Turkey Lowers Key Interest Rate in First Decision of 2025

The Central Bank of Turkey reduced its key interest rate by 250 basis points during its January 23 meeting, bringing it down from 47.5% to 45%. This was the first decision made by the bank's Monetary Policy Committee for 2025.

"The Committee has decided to lower the key interest rate to 45%," stated the Central Bank in its official announcement.

Earlier, Turkish President Recep Tayyip Erdoğan had indicated that the government would implement interest rate cuts in 2025 as part of its efforts to reduce inflation.

In addition, the Central Bank revealed that the Monetary Policy Committee will convene only eight times in 2025, compared to the usual twelve. The next meeting is scheduled for March 6.

To provide some context, during its December 26 meeting, the Central Bank of Turkey lowered the key interest rate by 250 basis points to 47.5%, marking its first rate cut in two years. The last time the bank reduced the rate was in February 2023.